CapitaLand India Trust (CLINT) has completed the acquisition of a multi-tenanted office building in Navi Mumbai for 6.76 billion rupees (US$80.8 million).

Additionally, about 300 million rupees is expected to be paid as deferred consideration, subject to the achievement of pre-agreed business milestones by Aurum Ventures Private Limited, the seller.

Building Q2, an information technology non-special economic zone office building at Aurum Q Parc business park, has been fully leased to reputed Indian and multinational companies such as Mizuho Bank, DP World, ICICI Bank, Axis Securities, John Cockerill, ideaForge Technology, and Shriram Finance.

Sanjeev Dasgupta, chief executive officer of CLINT’s trustee-manager CapitaLand India Trust Management, says the acquisition expands CLINT’s portfolio in Navi Mumbai, a thriving hub for IT and related services.

“We have seen strong leasing interest and rental growth in Building Q2 due to demand from multinational companies seeking a convenient base, as Aurum Q Parc is in close proximity to transport networks such as Ghansoli railway station and the upcoming international airport in Navi Mumbai,” Dasgupta says. “CLINT will continue to capitalize on the growing demand for business parks and remains committed to delivering sustainable returns to our unitholders.”

Buildings Q2 (left) and Q1 add a total of 1.47 million square feet to CLINT's portfolio. 

Building Q2 is the second of two buildings that CLINT has acquired through a forward purchase agreement with the vendor, which was announced on May 14 2018. The acquisition of Building Q1, an IT SEZ building, was completed on November 23 2021 and has a committed occupancy of 94%. Collectively, Buildings Q1 and Q2 add a total of 1.47 million sq ft to CLINT’s portfolio.

With the acquisition of Building Q2, the total completed floor area of CLINT's entire portfolio has increased by about 4.0% to reach approximately 21.8 million sq ft. In Mumbai, CLINT now has one business park (Buildings Q1 and Q2), one logistics park (Arshiya Panvel comprising seven operating warehouses), and one data centre under development (CapitaLand Data Centre Navi Mumbai 1).

Meanwhile, Fitch Ratings has assigned CLINT a first-time issuer default rating of BBB- with a stable outlook. 

The rating is underpinned by the trust's high-quality portfolio of Grade A offices in India, which Fitch expects will sustain high occupancy rates and positive rental reversions amid strong demand for IT outsourcing services.